Every registered investment adviser must file and annual updating amendment w/in 90 days of the end of each fiscal year.

What is an ADV-W?

If adviser indicates on Schedule I that it is no longer eligible for registration w/ SEC, the adviser has 90 days to w/draw its federal registration by filing Form ADV-W. (90 day grace period allows adviser time to become properly registered at the state level.)

Wha is Form ADV-E?

If investment adviser maintains cash or securities he must arrange for annual unannounced audits by an independent accounting firm. The accounting firm submits Form ADV-E on behalf of the investment adviser w/in 30 days of the audit.

What 3 cases provide exclusion from federal registration?

1. An investment adviser whose clients are in same state in which he maintains principal office and does not furnish advice on exchange-traded securities.

2. An investment adviser whose only clients are insurance companies.

3. An adviser who qualifies for the private adviser exemption. (Less than 15 client over past 12 mos, do not hold themselves out to public as investment advisers & are not investment advisers to registered investment companies.

According to SEC Release 1092 who would also be considered investment advisers?

Financial Planners

Sports & Entertainment Reps

Pension Consultants

Give an example of a wrap account.

The client is charged one flat fee for all their transactions as well as the services of a professional money manager.

True or False: A broker-dealer that offers wrap accounts no longer qualifies for the broker-dealer exclusion from the definition of an investment adviser.

True: The broker-dealer would be classified as an investment adviser and would need to register. Whether it would need to register at the federal or state level depends on the amount of the assets that it anticipates managing.